The city of Albuquerque is putting the heat on the company it contracted to build and deliver electric buses for the Albuquerque Rapid Transit project, after several missed deadlines.Target 7 dug through the city's contract with BYD, the China-based bus manufacturer. The contract, signed in January 2017, has several stipulations, including one describing the liquidated damages BYD must owe if the buses are not delivered in "substantially good condition as inspected by the city at the time released for shipment." The amount of damages is $275 a day for each bus that has not met those standards, according to the contract. On Friday, the mayor's office sent BYD a letter of notice on the damages that amount in total to about $800,000, according to a mayor's office spokesperson.“We will formally put the company on notice about the lack of compliance and the potential for compensatory damages," Mayor Tim Keller said in a statement released Friday. Some of the 16 buses that have already arrived were found to have damages, including visible cracks on the rear exterior of at least one of the buses. City of Albuquerque chief operating officer Lawrence Rael said there were other problems too."At least two of them are leaking fluid from the hubs right by the axles," Rael said. BYD also missed its own deadline of Feb. 15 to pass a critical charging system certification, according the mayor's office. "We may need to explore other options as it relates to this contract," Rael said.All 20 buses must pass federal durability testing known as the Altoona process, before they can be used. Rael said the city does not have to make any payments under the contract until all buses are certified in the Altoona testing. "This is all on the company's nickel, if you will. The city will not pay for these buses until the Altoona test is complete," Rael said.On Monday, BYD was not yet able to comment on Target 7's questions regarding the delivery delays. In a statement released Friday, BYD said its current delays are tied to an external supply chain and that it is providing daily updates to the city.The mayor's office is tentatively scheduled to give an update on the project on March 6.

ALBUQUERQUE, N.M. —

The city of Albuquerque is putting the heat on the company it contracted to build and deliver electric buses for the Albuquerque Rapid Transit project, after several missed deadlines.

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Target 7 dug through the city's contract with BYD, the China-based bus manufacturer.

The contract, signed in January 2017, has several stipulations, including one describing the liquidated damages BYD must owe if the buses are not delivered in "substantially good condition as inspected by the city at the time released for shipment."

The amount of damages is $275 a day for each bus that has not met those standards, according to the contract.

On Friday, the mayor's office sent BYD a letter of notice on the damages that amount in total to about $800,000, according to a mayor's office spokesperson.

“We will formally put the company on notice about the lack of compliance and the potential for compensatory damages," Mayor Tim Keller said in a statement released Friday.

Some of the 16 buses that have already arrived were found to have damages, including visible cracks on the rear exterior of at least one of the buses.

City of Albuquerque chief operating officer Lawrence Rael said there were other problems too.

"At least two of them are leaking fluid from the hubs right by the axles," Rael said.

BYD also missed its own deadline of Feb. 15 to pass a critical charging system certification, according the mayor's office.

"We may need to explore other options as it relates to this contract," Rael said.

All 20 buses must pass federal durability testing known as the Altoona process, before they can be used.

Rael said the city does not have to make any payments under the contract until all buses are certified in the Altoona testing.

"This is all on the company's nickel, if you will. The city will not pay for these buses until the Altoona test is complete," Rael said.

On Monday, BYD was not yet able to comment on Target 7's questions regarding the delivery delays.

In a statement released Friday, BYD said its current delays are tied to an external supply chain and that it is providing daily updates to the city.

The mayor's office is tentatively scheduled to give an update on the project on March 6.